Answered: Suppose a five-year, $1000 bond with…

Suppose a five-year, $1000 bond with annual coupons has a price of $892.55 and a yield-to-maturity of 5.3%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to two decimal places.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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Question

Suppose a five-year, $1000 bond with annual coupons has a price of $892.55 and a yield-to-maturity of 5.3%. What
is the bond's coupon rate?
The bond's coupon rate is
%. (Round to two decimal places.)

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